Makhteshim buyer extends deadline

Date:04-11-2011

Makhteshim Agan Industries Ltd. controlling shareholder Koor Industries Ltd. today notified the TASE that China National Agrochemical Corporation (ChemChina) has notified that Koor that it was extending the deadline to obtain permits from Chinese regulators for the acquisition until May 7. The extension is permitted under the sale contract.

ChemChina said that it was in the process of obtaining more of the permits needed for the transaction from the Ministry of Commerce and State Administration of Foreign Exchange, and that the approval process was proceeding according to schedule. Koor added that the parties were formulating a detailed loan agreement with it and on the wording of the letter of credit for Koor that is part of the sale of Makhteshim.

ChemChina obtained the necessary permit from the National Development and Reform Commission last week.

When the deal is completed, ChemChina will own 60% of Makhteshim and Koor will own 40%.

Makhteshim's share price fell 0.5% in morning trading to NIS 18.26, giving a market cap of NIS 7.98 billion. Koor's share price rose 0.8% to NIS 82.07.